- USDOLLAR Posts Longest Series of Decline Since 2011
- Euro Preserves Bearish Trend- Lower Low on Tap
Daily Change (%)
DJ-FXCM Dollar Index
MBA Mortgage Applications (
Monthly Budget Statement (JAN)
The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) marked the longest string of declines since 2011 following the Humphrey-Hawkins Testimony, and the greenback may weaken further over the remainder of the week as the bearish RSI momentum gathers pace.
Indeed, the dollar may have set a longer-term lower high as it fails to retrace the decline from September, and a dip below the December low (10,565) would instill a more bearish outlook for the greenback as it struggles to find support. With that said, the fundamental developments coming out of the U.S. economy may continue to dampen the outlook for the dollar should cyclical/transitory effects produce a further slowdown in private-sector activity, but the Federal Open Market Committee (FOMC) may have little choice but to raise rates sooner rather than later as a growing number of central bank officials anticipate a more robust recovery this year.
In turn, we will continue to watch the downside targets ahead of the Fed's
Two of the four components weakened against the greenback, led by a 0.38 percent in the Euro, and the single currency may face fresh lows in the coming days as the
Indeed, we still favor 'selling bounces' in the EURUSD as price and RSI retains the bearish trend carried over from the previous month, and the pair may continue to track lower ahead of the next ECB meeting on
In turn, we will continue to look for a series of lower highs paired with lower lows in the EURUSD, and the bearish trend may gather pace throughout 2014 as the region faces a growth threat for disinflation.